Investors' Soapbox PM

Potential Formations in Airline M&A

An economic recovery would suggest even further upside for combinations.

Updated Feb. 8, 2008 11:59 p.m. ET

Credit Suisse

GIVEN THE APPARENT IMMINENCE of a merger announcement [in the airline industry], we created pro-forma income statements (including a rough estimate of net merger synergies) for the most likely combinations and then looked at potential post M&A valuations under an economic recession scenario and our current base scenario.

Under a recession scenario, we estimate the industry post consolidation could report...